Vodacom is promoting capped broadband services as uncapped, arguing that it is acceptable because most users don’t reach their cap.
Vodacom offers three “Home Internet LTE Uncapped” packages, offering speeds of 10Mbps, 20Mbps, and 30Mbps.
The Advertising Standards Authority of South Africa (ASA) has ruled that marketing a product as uncapped when a hard cap exists is misleading. Its definitions are simple.
Capped refers to products which have a predetermined limit imposed, and once a user reaches this limit, connectivity is severed completely.
Uncapped refers to products where predetermined limits may remain relevant, but connectivity is never severed.
In simple terms, service providers may reduce speeds when thresholds are reached, but the service is never discontinued.
Vodacom informed its subscribers that effective from 15 February 2023, “all new and existing uncapped Home Internet customers will be subject to a hard lock”.
It means that once the soft cap fair use policy (FUP) has been reached, as per the respective price plan, subscribers’ service is interrupted unless they buy more data.
“In order to continue data usage, customers should purchase a 100GB or 200GB bundle,” Vodacom said.
Vodacom will implement a “hard lock”, also known as a cap, on its existing uncapped 10Mbps, 20Mbps, and 30Mbps products. The caps will occur at 600GB, 800GB, and 1TB, respectively.
It means that Vodacom is promoting its capped home Internet LTE products as uncapped, which is misleading and against the advertising authority’s guidelines.
Consumer journalist Wendy Knowler confronted Vodacom about the issue, and the mobile operator’s response was astounding.
“We believe that fair usage policies and hard lock are reasonable and fair to our customers given that we have set these at an overstated usage value that the vast majority of customers won’t reach, effectively providing an uncapped service,” Vodacom said.
“Where customers are affected by reaching the hard lock, we will review it,” the operator added.
Vodacom’s argument is, essentially, that it can claim anything, however misleading, as long as most of its customers are not affected by the misleading claim.
It is surprising that a large, listed company would make such a statement. It tramples on the advertising authority’s guidelines and makes a mockery of consumer rights.
Home Internet LTE Uncapped Terms and Conditions
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